The Analytical Overview of the Main Currency Pairs on 2018.02.12

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.22451

Open: 1.22449

% chg. over the last day: -0.10

Day's range: 1.22692 – 1.22959

52 wk range: 1.0492 – 1.2537

At the moment, the technical pattern on the EUR/USD currency pair is ambiguous. The trading instrument continues to be in a sideways trend. The EUR/USD quotes are consolidating in the range of 1.22500-1.22900. Financial markets participants expect additional drivers. We recommend opening positions from the key levels.

The news feed on the US economy and the Eurozone is calm.

The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is in the positive zone, above the signal line, which gives a strong signal to buy EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell EUR/USD.

Trading recommendations

Support levels: 1.22500, 1.22000, 1.21600

Resistance levels: 1.22900, 1.23300, 1.23900

If the currency pair fixes below the local support level of 1.22500, we recommend considering sales. The movement is tending potentially to the round level of 1.22000.

Alternative option. If the EUR/USD quotes fix above the level of 1.22900, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to 1.23300-1.23600.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.39109

Open: 1.38050

% chg. over the last day: -0.55

Day's range: 1.38973 – 1.39276

52 wk range: 1.2106 – 1.4345

On Friday, there were complicated negotiations on the UK exit from the EU. David Davis, speaking from the British side, blamed the EU for the fact that the regulator acts in bad faith. The EU's Brexit negotiator, Michel Barnier, said that there could be no "transition period". These statements hit the pound, as a result GBP/USD fell by more than 150 points. At the moment, the technical pattern on the GBP/USD currency pair is mixed. The key trading range is 1.38000-1.38500. The positions should be opened from these marks.

Today, the news feed on the UK economy is calm.

Indicators show the power of sellers. The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell GBP/USD.

Trading recommendations

Support levels: 1.38000, 1.37500, 137000

Resistance levels: 1.38500, 1.39000, 1.40000

If the price fixes below the round level of 1.38000, we recommend you to consider sales of GBP/USD. The movement is tending potentially to 1.37500-1.37300.

Alternative option. If the price fixes above the resistance level of 1.38500, it is necessary to look for entry points to the market to open long positions. The target movement level is 1.39000-1.39200.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25989

Open: 1.25718

% chg. over the last day: -0.20

Day's range: 1.25718 – 1.25857

52 wk range: 1.2059 – 1.3795

On Friday, there was a variety of trends on the USD/CAD currency pair. Weak reports on the Canadian labor market were published. In January, the number of jobs in the economy fell by 88 thousand,although investors had expected a decrease of only 2 thousand. The unemployment rate rose to 5.9%. At the moment, the technical pattern on the USD/CAD currency pair is ambiguous. The trading instrument is consolidating in the range of 1.25600-1.26000. Positions should be opened from the key levels.

The news feed on the economy of the US and Canada is calm.

The signals of the indicators are different. The price has fixed between 50 MA and 200 MA, which are dynamic support and resistance levels.

The MACD histogram is in the negative zone and continues to decline, which gives a strong signal to sell USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which gives a strong signal to buy USD/CAD.

Trading recommendations

Support levels: 1.25600, 1.25000, 1.24600

Resistance levels: 1.26000, 1.26400, 1.26800

If the USD/CAD quotes fix below the local support level of 1.25600, we recommend you to consider sales. The movement is tending potentially to the round level of 1.25000.

An alternative may be the growth of the quotes to 1.26400-1.26800.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 108.739

Open: 108.858

% chg. over the last day: +0.05

Day's range: 108.511 – 108.724

52 wk range: 107.33 – 115.51

On Friday, there was a variety of trends on the USD/JPY currency pair. Such volatility was provoked by a collapse, and then a gradual improvement in the world stock markets. At the moment, the technical pattern is ambiguous. The key support and resistance levels are: 108.500 and 108.800. Positions should be opened from these marks. We recommend you to pay attention to the 10-year US government bonds yield.

The news feed on Japan's economy is calm. Financial markets of Japan are closed due to the holiday.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 108.500, 108.300, 108.000

Resistance levels: 108.800, 109.200, 109.600

If the price fixes above the resistance level of 108.800, it is necessary to consider purchases of USD/JPY. The movement is tending potentially to 109.200-109.600.

Alternative option. If the price fixes below the level of 108.500, the USD/JPY quotes are expected to fall. The movement is tending potentially to the round level of 108.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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